Starbucks Valuation

Is SBUX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SBUX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SBUX (CHF84) is trading below our estimate of fair value (CHF99.38)

Significantly Below Fair Value: SBUX is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SBUX?

Other financial metrics that can be useful for relative valuation.

SBUX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA18x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

How does SBUX's PE Ratio compare to its peers?

The above table shows the PE ratio for SBUX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.3x
CMG Chipotle Mexican Grill
52.2x16.2%US$71.1b
3690 Meituan
38.2x31.3%HK$655.0b
MCD McDonald's
25x6.5%US$204.9b
CPG Compass Group
30x12.0%UK£40.3b
SBUX Starbucks
25.9x9.7%CHF 105.4b

Price-To-Earnings vs Peers: SBUX is good value based on its Price-To-Earnings Ratio (25.9x) compared to the peer average (35.7x).


Price to Earnings Ratio vs Industry

How does SBUX's PE Ratio compare vs other companies in the European Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SBUX is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the European Hospitality industry average (18.5x).


Price to Earnings Ratio vs Fair Ratio

What is SBUX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SBUX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SBUX's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SBUX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 84.00
CHF 82.82
-1.4%
12.6%CHF 103.52CHF 66.42n/a29
Aug ’25CHF 84.00
CHF 76.22
-9.3%
9.8%CHF 97.85CHF 67.27n/a29
Jul ’25CHF 84.00
CHF 80.57
-4.1%
11.4%CHF 107.25CHF 68.82n/a29
Jun ’25CHF 84.00
CHF 81.27
-3.3%
11.2%CHF 108.78CHF 69.80n/a28
May ’25CHF 84.00
CHF 86.22
+2.6%
11.6%CHF 110.30CHF 71.69n/a29
Apr ’25CHF 84.00
CHF 96.08
+14.4%
7.3%CHF 114.87CHF 85.93n/a29
Mar ’25CHF 84.00
CHF 93.65
+11.5%
7.0%CHF 111.58CHF 83.47n/a30
Feb ’25CHF 84.00
CHF 92.01
+9.5%
7.0%CHF 108.93CHF 81.48n/a29
Jan ’25CHF 84.00
CHF 96.41
+14.8%
7.2%CHF 106.94CHF 85.55n/a29
Dec ’24CHF 84.00
CHF 99.80
+18.8%
7.1%CHF 110.47CHF 88.38n/a28
Nov ’24CHF 84.00
CHF 98.03
+16.7%
7.6%CHF 112.43CHF 89.04n/a28
Oct ’24CHF 84.00
CHF 102.31
+21.8%
9.1%CHF 136.80CHF 92.11n/a27
Sep ’24CHF 84.00
CHF 99.06
+17.9%
8.9%CHF 131.67CHF 88.66n/a27
Aug ’24CHF 84.00
CHF 100.08
+19.1%
8.7%CHF 130.40CHF 87.81CHF 84.0026
Jul ’24CHF 84.00
CHF 104.36
+24.2%
8.0%CHF 123.13CHF 91.44CHF 84.0027
Jun ’24CHF 84.00
CHF 105.35
+25.4%
7.9%CHF 123.88CHF 92.91CHF 84.0026
May ’24CHF 84.00
CHF 101.55
+20.9%
9.2%CHF 121.33CHF 76.72CHF 84.0028
Apr ’24CHF 84.00
CHF 103.38
+23.1%
10.5%CHF 126.91CHF 79.09CHF 84.0029
Mar ’24CHF 84.00
CHF 103.88
+23.7%
10.3%CHF 127.58CHF 79.51CHF 84.0030
Feb ’24CHF 84.00
CHF 101.78
+21.2%
10.2%CHF 125.84CHF 79.57CHF 84.0029
Jan ’24CHF 84.00
CHF 94.43
+12.4%
10.5%CHF 127.33CHF 80.52CHF 84.0029
Dec ’23CHF 84.00
CHF 95.05
+13.2%
9.9%CHF 129.75CHF 82.05CHF 84.0030
Nov ’23CHF 84.00
CHF 96.24
+14.6%
10.0%CHF 134.15CHF 78.91CHF 84.0030
Oct ’23CHF 83.00
CHF 95.59
+15.2%
9.9%CHF 132.85CHF 78.14CHF 84.0030
Sep ’23CHF 83.00
CHF 90.18
+8.7%
12.0%CHF 130.03CHF 76.49CHF 84.0028
Aug ’23CHF 83.00
CHF 88.85
+7.0%
13.0%CHF 131.13CHF 77.14CHF 84.0028

Analyst Forecast: Target price is less than 20% higher than the current share price.


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